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Tuesday, January 31, 2012

Everybody's always right

Every analyst that told you the gold bull was dead is now saying they told you to buy the lows now that gold has magically revived. Next time gold corrects they'll have told you to sell the highs. Because everybody's always right.

And if they don't have the balls to just lie to your face then they'll tell you that things are bad, but to buy cautiously anyway but hedge your buys and be prepared to sell before things fall apart, and then buy again just before they rebound.

Every now and then somebody just doesn't care, because they've been so right for so long and made so much money off it that they just couldn't care less what you think and they wouldn't dream of asking your for any money anyway. They don't need your money. They really hope you hang on to a bit of it, because if you everybody loses, then everybody loses.

Like, for example, George Soros: "I am not
here to cheer you up. The situation is about as serious and difficult as
I've experienced in my career... The best-case scenario is a
deflationary environment. The worst-case scenario is a collapse of the
financial system... At times like these, survival is the most important
thing."

Now, I'm no George Soros, but I'll tell you one thing for sure. If we move into deflation, the Central banks will print money until the currencies deflate faster than the goods and services they buy. This will benefit gold. And if the financial system collapses, all paper money goes to zero. This will benefit gold.

To me that's a win win (for gold - and a lose lose for everything else). How do you see it?